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Asked by JusticeExplorationFly6
You are evaluating an investment project costing $11,000 initially....
You are evaluating an investment project costing $11,000 initially. The project will lose 5,000 in year 1 and earn 9,000 in year 2 and then create net cash flows of 4,400 per year for 8 more years, according to the following 10-year schedule:
Year 0: -11000
Year 1: -5000
Year 2: 9000
Year 3: 4400
Year 4-10: 4400
What is the payback period for this project?
If the appropriate discount rate is r = 5%. What is the NPV of this project?
Solved by verified expert
Answered by nitindhokale27
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